The original instrument was prepared by Riley Boudreaux. The following digest,
which does not constitute a part of the legislative instrument, was prepared by J. W.
Wiley.
DIGEST
SB 257 Reengrossed 2015 Regular Session Thompson
Present law creates a "The Tax Increment Development Corporation" [TID] in each parish and
municipality in the state which may be activated by an ordinance or resolution of the governing
authority of the parish or municipality. The TID is authorized to fund a tax increment development
project with ad valorem property tax increments, including the authority to issue indebtedness.
Present law authorizes entities defined as "local governmental subdivisions" to implement ad
valorem tax and sales tax increment financing and to issue revenue bonds backed by a pledge of the
tax increments to finance all or any part of an "economic development project".
Present law authorizes such "local governmental subdivisions" to enter into a joint venture or
cooperative endeavor for a public purpose with a federal, state, or local governmental agency or with
a private or public firm, partnership, corporation, or other entity.
Present law authorizes such "local governmental subdivisions" to issue revenue bonds and other
bonds and forms of indebtedness.
Present law authorizes such "local governmental subdivisions" to levy an ad valorem tax of up to
five mills and two percent of sales tax after the governing authority of the district gives notice and
meets in open and public session to hear any objections and the favorable vote of a majority of the
electors of the district voting in an election.
Such tax increase may be levied only after the governing authority of the district has called a special
election submitting the proposition for the levy of such taxes to the qualified electors of the district
and the proposition has received the favorable vote of a majority of the electors voting in the
election; however, in the event there are no qualified electors in the district as certified by the
registrar of voters, no such election shall be required.
Proposed law defines any Tax Increment Development Corporation [TID] activated in a municipality
with a population of not less than 3,300 and not more than 3,395 according to the most recent federal
decennial census as an "issuer" and a "local governmental subdivision" for utilization of such TIF
authority in present law, but only for the purpose of a specified project described as the financing
or refinancing an economic development project or a tax increment community development project
consisting of a combination of residential housing units, a bank, and retail establishments including
a grocery store, pharmacy, restaurants, and related facilities.
Proposed law specifically grants to such TID all the ad valorem, sales tax, and occupancy tax
increment finance and bonding authority, and the ad valorem and sales tax levy authority granted to "local governmental subdivisions" as described above.
Restricts the powers, authorities, and duties granted to the TID under present law to a
geographically-defined district of no more than 10 acres initiated by the chief executive officer or
mayor of a municipality or to a tax increment community development area established by ordinance
or resolution of the TID. The TID may pledge any taxes collected under the authority of the
proposed law to the project described in proposed law in furtherance of the purposes of the TID.
Such financing may include but shall not be limited to loans, mortgages, the issuance of bonds, or
the issuance of certificates of indebtedness.
Proposed law must be liberally construed to effect its purposes.
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Amends R.S. 33:9038.31(2) and (3); adds R.S. 33:9038.68)
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Revenue and Fiscal Affairs to
the original bill
1. Limits the purpose for which the TIF authority may be used to the financing or
refinancing of an economic development project or a tax increment community
development project consisting of a combination of residential housing units, a bank,
and retail establishments including a grocery store, pharmacy, and restaurants, and
related facilities
2. Limits the size of the district to no more than 10 acres.
Senate Floor Amendments to engrossed bill
1. Makes technical changes.